Safeway’s Quarterly Earnings Up 15%

Safeway Inc.’s fiscal third-quarter profit rose 15% as the third-biggest U.S. supermarket chain controlled costs and boosted sales of more profitable store-brand products.

Net income matched analysts’ forecasts, rising to $309.2 million, or 60 cents a share, from $270 million, or 53 cents, a year earlier. Sales in the period ended Sept. 8 rose 6.8% to $7.96 billion from $7.46 billion, the company said.

Safeway held down costs by reducing theft and food spoilage. Profit margins widened as the company boosted sales of private-label goods, which have a 10% higher return than national brands.

Shares of Pleasanton, Calif.-based Safeway rose $1.22 to close at $39.72 on the NYSE. They have fallen 38% this year.